Connect with us

Blockchain

This Week in Crypto

Crypto markets had a wild ride last week with many traders opting to stay away from the screens as exchanges struggled with the massive volatility, liquidations and volume.

Republished by Plato

Published

on

By Guest Contributor: Daniel Gupta, Kenetic Capital

Fear gripped the global markets last week and unless your investment portfolio consisted heavily of USD (kudos to Warren Buffet), then nothing really was immune to the perfect storm of global uncertainty around the COVID-19 outbreak which was declared a pandemic by the World Health Organization on the 11th March.

Crypto markets had a wild ride last week with many traders opting to stay away from the screens as exchanges struggled with the massive volatility, liquidations and volume — we note that Coinbase saw record volumes on Thursday with over $1.5bn in value traded. With massive volatility, inevitably many traders would have lost fortunes and Twitter was indeed eerily quiet once the dust settled at the end of the week. We can confidently assume that hundreds of derivative trading accounts were liquidated as Bitcoin precipitously fell from $8,000 to $3,800 over the course of Thursday.

COVID -19 is a major black swan event — defined by the fact that no one anticipated it or still really understands the possible long-term impact to humanity and the world economy. As history has shown, the worst enemy to all markets is uncertainty and the sheer scale of the uncertainty surrounding this global pandemic, combined with the oil war is excruciatingly clear to see everywhere.

Crypto prices started weakening last weekend as wallets associated with the PlusToken ponzi started to move 13,000 BTC to coinjoin mixers, commencing mass liquidations and raising ~$100M in fraudulent cash. How exchanges are still facilitating this is absolutely staggering. What is the point of KYC and AML?! The timing of the liquidations coincided with the broader market chaos and panicked sell offs, with the hope this distraction would mask the activity of these criminals whilst focus is elsewhere. The good news is that there doesn’t appear to be much more PlusToken BTC or ETH inventory to be sold and therefore alleviating, once and for all, this frustrating and significant sell pressure. Follow @egroBTC for quantitative analysis of these liquidations and wallet movements.

Bitcoin’s massive price drop last week was the 3rd largest daily price decline in its history and triggered a cascade of liquidations across derivative exchanges. These liquidations, led by BitMEX, was nothing short of mind-blowing. In traditional markets such large moves can trigger ‘circuit breakers’ which temporarily halt trading and allow order books to be refilled and reduce panic in the market. This actually happened 3 times last week during trading of the S&P and allowed a more ‘orderly chaos’ to play out, ultimately protecting market participants and adding structure to the market. No such thing in crypto.

Thursday saw Bitcoin’s price plummet and subsequently the liquidation of hundreds of long positions resulting in orderbooks evaporating as buyers pulled out of any significant bid support. This is where circuit breakers in traditional markets are useful, as they allow the market to pause for breath which in turn allows buyers and sellers, who withdraw orders due to the volatility, to come back in to the order books. Thankfully BitMEX, and many other derivative exchanges, hold sizable ‘’insurance funds’’ that can absorb the liquidations in the absence of natural buyers to take over the positions. Sadly, for many, these aggressive down moves would have cleaned out trading accounts.

Looking ahead, it is hard to see a more terrifying and anxious week in crypto, let alone global markets. However, we are firmly in black swan territory and not even the best epidemiological, political or economic minds can say, with certainty, how this will play out.

One thing is for sure, Bitcoin doesn’t care about virus’s, oil or fiscal stimuli. It will just keep producing block after block and allow anyone to interact with the blockchain and move value from person to person without question or complaint. As the global financial system stutters and falters, demanding massive liquidity to keep its thirsty apparatus from grinding to a halt, it’s reassuring to know that Bitcoin doesn’t need any intervention to keep going. Bitcoin is the tortoise…slowing plodding along, reliable and consistent but new to this financial race. The modern financial system is a pumped-up, steroid using hare that must take its cyclical fix of performance enhancing stimulus to keep its legs running at an ever-increasing pace.

Whatever it takes…

So, what now? Trump’s precious stock market is looking decidedly shaky and the debt laden US corporations will soon need liquidity as a result of massive disruptions to the US economy. The next Federal Open Market Committee (FOMC) meeting is coming up next week however they decided to move early and cut rates to zero over the weekend.

“I’m not happy with the Fed because I think they’re following not leading, and we should be leading,”

“I have the right to remove him.’’ Referring to Fed Chair, Jerome Powell

“I also have the right to put him in a regular position and put someone else in charge, and I haven’t made any decisions on that.”

Donald Trump

As we discussed a few weeklies back, the US repo market came under alarming stress in Q4 last year and USD shortage caused lending to dry up and repo rates to skyrocket to near 10%. The Fed simply cannot allow the repo markets to fail otherwise the world economy that is built on top of it will collapse. There is obviously much more nuance to the problem but the stakes are massive should the repo engine stop firing. Last week the Fed offered up almost unlimited short-term liquidity to the repo market by promising over $5 trillion USD in 1- and 3-month loans should the market need it. As one commentator so eloquently put it…

’’The Fed just brought an aircraft carrier to a knife fight’’

Gennadiy Goldberg of TD Securities

This coming week will see if the Fed are prepared to broaden the asset purchasing and deploy real QE. As we expected last week, the liquidity faucets are opening and the world’s central bankers, via various means, will print fiat currency until the current problems are inflated away — hopefully. Will we see the Japanification of the US economy as the liquidity problems start to stretch into corporate America? Whatever happens, mass stimulus is coming, hold on to your hats.

Where to hide?

With huge devaluation about to happen (again), what should investors do?

For some, Bitcoin has failed in its test as a safe haven asset or gold 2.0. It has lost massive value in the face of global panic. So, if it’s not a safe haven asset or gold 2.0 then what is it?

Due to Bitcoin’s relatively young age, this is its first real test in a global macro shock. If the store of value / gold 2.0 narrative is to be believed then a significant draw down in price during the initial stages of a recession can be expected. The chart below shows gold suffering a ~34% draw down during the 2008 crises before flipping to its ‘’inflation hedge’’ store of value use case as central banks flooded the world with QE and printed the world out of crises via expanding the money supply. What this chart shows is a lag between the impact of a market event and the market’s realization of its need to protect purchasing power during mass fiat devaluation via QE.

It would be foolish to say the exact same thing will happen again this time but if Bitcoin is to do what it was designed to do then the macro landscape could not be better for the price of Bitcoin (and gold) to shock and amaze as investor seek shelter when panic subsides and QE starts flowing.

Source: https://www.fintechconnect.com/blockchain/articles/this-week-in-crypto

Blockchain

Altcoin Season 2021 Booming as BTC Dominance Hits 2-Year Low: The Weekly Crypto Recap

Republished by Plato

Published

on

This week we saw altcoins taking for the skies as Bitcoin was rangebound. This led to a plummeting BTC dominance that hit a 2-year low.

Bitcoin was trading slightly below $60K this time last week, and everyone had their hopes up that it would conquer this coveted level. Unfortunately, last Saturday, the price started showing signs of weakness, and it declined all the way to $57K on Sunday.

From there, Bitcoin started trading flat and made another unsuccessful attempt at $60K on Monday. Bulls didn’t have it in them, though, and as the week went by, the price remained indecisive. This led to a serious drop on Wednesday, which saw BTC going down to almost $55K and leaving billions worth of liquidations across the board.

Nevertheless, the bulls regrouped and started pushing the price back up to bring it to where it currently trades at around $58K. All of this indecisiveness, however, saw its dominance decrease to 55%, leaving altcoins a lot of room to breathe.

And breathe, they did. Ethereum, as well as Binance Coin, charted fresh all-time highs, while Ripple’s XRP finally came out of its shell and spiked above $1 to paint a new three-year high. This happened despite the ongoing SEC clash.

Altcoins are popping across the board, with many mid- and small-cap cryptocurrencies charting double- and even triple-digit increases. This was the case with WazirX, which soared by more than 1,000% and painted a fresh ATH. All in all, the booming altcoins drove the total crypto market cap above $2 trillion for the first time.

In any case, it was definitely a good week for the entire cryptocurrency market. America’s second-oldest bank, State Street, announced it would also enable cryptocurrency trading on its platform, while BNY Mellon revealed they would be a service provider for SkyBridge’s Bitcoin ETF, should it be approved.

With institutional adoption of Bitcoin continuing to increase and its rangebound trading, the chances are that we are in for a huge move that might come quicker than everyone expects.

Market Data

Market Cap: $1986B | 24H Vol: 126B | BTC Dominance: 55%

BTC: $58,477 (+-1.89%) | ETH: $2,077 (+0.69%) | XRP: $0.1.03 (+72.12%)

This Week’s Titles You Better Not Miss

America’s Second-Oldest Bank State Street to Enable Crypto Trading on its Platform. The second-oldest US financial service and banking organization State Street Corporation has announced its plans to enable cryptocurrency trading using its infrastructure. This comes as an additional push towards institutional adoption.

BNY Mellon to Become Service Provider for SkyBridge Bitcoin ETF. BNY Melon has revealed that it will become a service provider for SkyBridge’s Bitcoin ETF. Of course, before this happens, the ETF would first have to receive the official approval of the United States Securities and Exchange Commission.

Seven-Time Super Bowl Champion Tom Brady to Release an NFT Platform. Tom Brady, one of the biggest names in the US NFL, as well as a seven-time Super Bowl champion, plans to launch an NFT platform this spring. This comes as the nascent field of non-fungible tokens continues to boom.

Demand for Bitcoin Increases Despite Regulatory Restrictions: Goldman Sachs CEO. The CEO of Goldman Sachs, David Solomon, said that the demand for Bitcoin continues to increase despite the regulatory restrictions. The bank also said that it continues to support its clients’ needs when it comes to cryptocurrency exposure.

Coinbase Reports Record-Breaking Q1 With $1.8 Billion in Revenue Ahead of IPO. The leading US-based cryptocurrency exchange, Coinbase, revealed that its first quarter of this year has been record-breaking. It reported a revenue of around $1.8 billion while the trading volume increased by more than 300%.

Binance Smart Chain Daily Transactions 200% More Than Ethereum’s. The Binance Smart Chain continues to expand. In fact, it appears that Ethereum has a serious competitor in its face because BSC saw an all-time high of daily transactions, which are currently more than 200% than those on ETH.

Charts

This week we have a chart analysis of Bitcoin, Ethereum, Ripple, Binance Coin, and Cardano – click here for the full price analysis.

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/altcoin-season-2021-booming-as-btc-dominance-hits-2-year-low-the-weekly-crypto-recap/

Continue Reading

Blockchain

11% Of Business In Spain Use Blockchain Technology, Report

Republished by Plato

Published

on

The use of decentralized technologies is growing in Spain, and we are not just talking about cryptocurrencies but blockchain in general, especially for enterprise purposes.

From municipalities and public universities to corporations and industries, more and more businesses are adopting the blockchain in one way or another, increasing the ecosystem’s diversity and activity.

According to a report by business consulting firm IDC Spain, about 46% of large companies in Spain are in favor of incorporating blockchain and cryptographic technologies to increase their security.

The Use of Blockchain Technologies is Growing in Spain

The report, “State of the Art of Blockchain and Cryptographic Technologies in Spain,” was published by IDC in partnership with the technology company REALSEC. It evaluates how blockchain technologies have evolved in Spanish companies and shows more ambitious figures than those recorded in the first edition of its release.

The report also states that 1 in 4 companies in Spain have had exposure to blockchain technologies, yet 11% of the business sector actively uses a blockchain, a significant growth compared to the 1% recorded just one and a half years ago.


ADVERTISEMENT

The report also notes that 17% of logistics companies are expected to have a relationship with a blockchain company or to provide IoT services.

Jesús Rodríguez, CEO of Realsec, said in an interview published on his company’s official website that although the use of blockchain solutions has a growing acceptance in the Spanish industry, there is still a need to work on its efficiency and show it as a viable competition against other centralized and more traditional solutions.

“The new economy imposes adopting new business models based on digital innovation. In this context, in 2020, blockchain has begun to be perceived as an efficient technology that contributes to reducing costs and risks and as one of the main technological strategies that want to incorporate a large number of companies.”

Blockchain Good, Crypto Bad

Spain loves blockchain technology. In fact, the government itself is promoting a regulatory sandbox that could serve to boost blockchain businesses in several areas, and the Central Bank of Spain said that it prioritized investigations about a CBDC.

However, the government is not very friendly to the cryptocurrency philosophy and has worked hard to tax cryptocurrency trading, even considering the use of AI to identify cryptocurrency traders. Also, the government is open to reforming its legal framework to better regulate cryptocurrencies.

Recently Spain’s tax office sent more than 15,000 letters to various cryptocurrency traders and hodlers registered in the country, reminding them to pay their taxes. Previously the authorities had asked local exchanges and providers of financial services for information on how users exchanged their cryptocurrencies.

Seems like Spain is another country with the “Blockchain, not Bitcoin” mindset.

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/spain-blockchain-enterprise-use-grew-to-11-percent/

Continue Reading

Blockchain

Real Estate Giant Teams up with Gemini to Buy Bitcoin and Allow BTC Rent Payments

Republished by Plato

Published

on

Caruso, one of the largest estate companies in the US, has entered the BTC space with an undisclosed investment. The organization also revealed it will begin accepting bitcoin as payment for rent following a partnership with Gemini – the cryptocurrency exchange founded by the Winklevoss twins.

Pay Rent with Bitcoin

Without specifying the precise amount, Caruso announced earlier that it had made a “significant initial investment” in the primary cryptocurrency as part of its treasury management strategy. The move has made the company “the first to adopt the technology in the real estate industry.”

The firm completed the purchase through a partnership with Gemini, a US-based cryptocurrency exchange and custodian. The innovation reinforced the company’s confidence in the digitizing space.

Additionally, the firm enabled its tenants to pay rent with bitcoin, should they choose to do so.

Rick Caruso, founder, and CEO of the company weighed in on the topic:


ADVERTISEMENT

”We believe that cryptocurrency is here to stay. We believe that bitcoin is the right investment for us. We’ve allocated a percentage of what would normally go into the capital market into bitcoin.”

The billionaire went further and stated crypto is a long-term resolution and ”it’s not about the next year or five years”.

”We are thrilled to partner with Caruso as they continue to push the real estate sector to new heights by embracing cryptocurrency for the benefit of both their customer experience and their own business operations. We are excited to help them execute their digital asset treasury strategy and advise them more broadly throughout their cryptocurrency journey.” – commented Gemini’s CEO Tyler Winklevoss.

The Los Angeles-based company has become a part of the growing institutional adoption of bitcoin around the globe. According to experts, companies like MicroStrategy, MassMutual, Tesla, and more are a vital factor behind BTC’s recent price increase.

Bitcoin as a Form of Payment

While Caruso may be the first firm from the real estate industry to adopt BTC as a payment method, companies from other sectors have well preceded it. Most recently, the popular NBA team Sacramento Kings said it will give the option to its players to receive their salaries in the primary cryptocurrency.

Another fresh example is the UK private jet company – PrivateFly. The organization revealed that nearly 20% of its yearly payments were paid in bitcoin.

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/real-estate-giant-teams-up-with-gemini-to-buy-bitcoin-and-allow-btc-rent-payments/

Continue Reading
Blockchain2 days ago

XRP Price Analysis: 08 April

Blockchain3 days ago

Decentralized oracle solution Umbrella Network adds Huobi as validator node

Blockchain2 days ago

$48B Asset Manager Millennium Management Dabbles With Bitcoin

Blockchain2 days ago

Binance Smart Chain Daily Transactions 200% More Than Ethereum’s

Blockchain2 days ago

America’s Second-Oldest Bank State Street to Enable Crypto Trading on its Platform

Blockchain2 days ago

Polkadot Price Analysis: 08 April

Blockchain2 days ago

Digital yuan campaign planned for contested island in the South China Sea

Blockchain3 days ago

Tesla’s landlord accepts crypto; will Elon Musk pay rent in Bitcoin?

Blockchain2 days ago

Bitcoin exchanges just saw massive Tether stablecoin deposits

Blockchain3 days ago

Why JP Morgan’s CEO calls Bitcoin regulation a “serious issue”

Blockchain3 days ago

Bitcoin Miners Hit Jackpot as Hash Rate Peaks Again

Blockchain3 days ago

Miners are hoarding Bitcoin from record daily earnings

Blockchain3 days ago

Crypto sentiment falls even as Bloomberg tips Bitcoin will hit $400K

Blockchain3 days ago

Revolutionizing the crypto-market in India with CryptoBiz exchange

Blockchain3 days ago

Tendermint acquires B-Harvest, creator of Cosmos-based Gravity DEX

Blockchain4 days ago

CoinMarketCap removes South Korea crypto exchanges from Bitcoin price tracker

Blockchain3 days ago

Ontology’s cross chain DeFi lending platform Wing is now live on Ethereum

Blockchain2 days ago

Man Gets 12 Years in Prison After Trying to Buy Lethal Chemical Weapon With Bitcoin

Blockchain2 days ago

Phemex Launches OTC Trading, Enables Crypto Purchase with Bank Transfers

Blockchain2 days ago

Cardano’s Anti-Counterfeit Solution Sees First Successful Implemetation

Trending